Nine Dragons signs MOU for mill in India

Hong Kong-based Nine Dragons Paper Ltd. has signed a memorandum of understanding (MOU) with the Indian state of Maharashtra to invest some $630 million to establish a paper- and board-making presence in the state.

“We feel very positive about building our presence in India,” says the company’s Benjamin Ng. He said the MOU “is very early stage; it only reflects the serious intention of the parties to work together to further explore feasibility and start a process of studying and pinning down more details about business targets, optimal investment scales, terms and structure, etc.”

The Economic Times reports that Nine Dragons intends to build a mill in the state, which is located in western and central India and includes Mumbai. Nine Dragons would reportedly invest up to 45 billion Indian rupees ($634 million) to build the facility.

The MIDC describes itself as the “industrial infrastructure development agency” for the state, which has some 112 million people. The agency says it manages some 289 industrial parks in Maharashtra.

Nine Dragons currently has more than 15 million metric tons of paper- and board-making capacity, with a focus on containerboard and other packaging grades.

In late February remarks accompanying its most recent financial report, Nine Dragons said it was “actively pursuing the goal of completing the construction of four new paper machines in China in 2019” and was planning “to implement a series of equipment upgrade and expansion projects at its four pulp and paper mills in the United States.” It did not at that time mention any plans for the Indian market.

SC Johnson, a global manufacturer of household cleaning products, and Plastic Bank, a platform that aims to prevent the flow of plastics into the ocean through the sale and use of social plastic, have opened eight recycling centers in Indonesia in the past year to help increase recycling rates across Indonesia, while addressing poverty. The company says the recycling centers have been designed to increase infrastructure in the country.

SC Johnson vows to open a ninth recycling center if people tweet with the #SocialPlastic or #SCJRecycles tag this week.

“Plastic pollution has become a critical issue around the globe, especially where recycling infrastructure is not in place. We believe the more people are talking about this issue, the more government, businesses, NGOs and communities will work together to address it,” explains Kelly Semrau, senior vice president of global corporate affairs, communication and sustainability at SC Johnson. “Social media can be a great motivator.”

According to Ocean Conservancy and the McKinsey Center for Business and Environment, five Asian countries – China, Indonesia, the Philippines, Vietnam and Thailand – account for more than 55 percent of the plastic waste leaking into the ocean. Raising collection rates to an average 80 percent across those countries would reduce plastic scrap leakage into the ocean by 23 percent. Indonesia, which has been home to SC Johnson for decades, has pledged up to $1 billion per year to reduce the amount of plastic in its waters.

The first recycling center opened in Bali in October, with all centers planned to be operational by May 2019. The centers will have a minimum capacity of 100 metric tons of plastic per year. Local waste collectors can bring the plastic they collect to any center, where they can exchange it for digital tokens. Using Blockchain technology, they can use the tokens to buy goods and services, according to SC Johnson.

The company challenges Twitter users to share their support for reducing ocean plastic by tagging #SocialPlastic or #SCJRecycles this week. If the company counts at least 20,000 tweets or retweets with those tags by the end of the week, it will open an additional recycling center in Indonesia.

“I want to continue the momentum that’s building out there around awareness of this issue, because that’s going to help us solve it,” SC Johnson Chairman and CEO Fisk Johnson says. “With the attention this issue has gotten around the world, we’re at a tipping point. Business has an opportunity to embrace this change and continue to drive attention to this issue.”

SCS Global partners with Climate Collaborative as solutions provider

The Climate Collaborative, a joint project of the Sustainable Food Trade Association (SFTA) and OSC2, has announced SCS Global Services is an official solutions provider partner. SCS, Emeryville, California, is an international third-party certifier and standards developer, with a focus on climate and sustainability. As a solutions provider, SCS will share insights and support the efforts of the Climate Collaborative's network of companies committed to taking “bold action” on behalf of the climate and environment.

“One of our core priorities at the Climate Collaborative is to connect companies with tools, resources and trusted partners and solutions providers in the industry that will enable our network to raise their climate ambitions,” Climate Collaborative Executive Director Erin Callahan says. “In addition to the expertise and services provided by SFTA and OSC2, the Climate Collaborative engages supplementary solutions provider partners.”

The Climate Collaborative provides a roadmap and resources for seeking to minimize their carbon footprints. Companies can make public commitments in action areas covering agricultural practices, energy efficiency, food waste, forests, packaging, policy, renewable energy and transportation. Since the collaborative was founded in 2017, more than 340 companies have made 1,300 specific climate commitments.

“The Climate Collaborative is a highly effective organization bringing together companies who are demonstrating every day that environmental and climate stewardship is good business,” SCS Senior Vice President Linda Brown says. “We have enjoyed exchanging information and ideas, and look forward to help these companies innovate and achieve their climate and sustainability goals.”

Nine Dragons highlights expansion plans in FY2019 interim results

Nine Dragons Paper (Holdings) Ltd., Hong Kong, announced its consolidated interim results of the company and its subsidiaries for the six months ended Dec. 31, 2018. According to a Nine Dragons news release, the Hong Kong-based company achieved a revenue increase of about 18.2 percent over the corresponding period last year.

The company attributes the growth to its packaging paper business, including linerboard, high-performance corrugating medium and coated duplex board, which accounted for about 86.2 percent of the revenue, with the remaining revenue being generated from its printing and writing paper and high-value specialty paper and pulp products.

According to a Nine Dragons news release, the group’s total design production capacity in packaging paperboard, printing and writing paper and high-value specialty paper and pulp products as of Dec. 31 was 15.3 million tons per year, comprising about 7.6 million tons per year of linerboard, 3.4 million tons per year of high-performance corrugating medium, 2.6 million tons per year of coated duplex board, 1.1 million tons per year of printing and writing paper and 0.6 million tons per year of high-value specialty paper and pulp products.

Additionally, Nine Dragons reports that its new paper mill in Chongqing base began production in February 2019, adding another 0.55 million tons per year to the group’s capacity.

During the period, ND Paper, a wholly owned subsidiary of the group, completed the acquisition of two pulp mills—the Fairmont Mill in West Virginia and the Old Town Mill in Maine. The Fairmont Mill manufactures and distributes recycled pulp with a production capacity of 0.22 million tons per year. The Old Town Mill, which used to manufacture and distribute bleached hardwood kraft pulp with a production capacity of 0.16 million tons per year, will be converted to produce unbleached kraft pulp. Together with the Rumford Mill and the Biron Mill acquired by ND Paper LLC in fiscal year 2018, these four mills in the United States are expected to offer access to high-quality raw material for the group’s primary business, with significant synergies, including cost savings, exhibited in a vertically integrated business model.

The group is actively pursuing the goal of completing the construction of four new paper machines in China in 2019, among which a total of three new paper machines at the Shenyang base, the Hebei base and the Quanzhou base are expected to start production in the second quarter of 2019. Also, a new paper machine at the Dongguan base is expected to start production in the third quarter of 2019. Upon the start of production, these four paper machines will add 2.05 million tons per year to the group’s total design production capacity.

Additionally, ND Paper LLC plans to implement a series of equipment upgrade and expansion projects at its four pulp and paper mills in the U.S., which may all be completed and begin production before the end of 2021. By then, the group’s production capacity in the U.S. will increase by 1.4 million tons per year, bringing its global total production capacity to more than 19 million tons per year.

“For future market outlook, it is expected that China will continue to implement stringent environmental policies, making the advantages of large enterprises becoming more prominent,” says Cheung Yan, chairlady at Nine Dragons. “Yet, the group is confident about the fundamental of domestic consumption and industry demand in China and believes that there is some growth potential in market demand. Meanwhile, the group remains cautiously optimistic and positive about the [China-U.S.] trade war."

ARMAC expands Eriez sales territory

Eriez has announced that ARMAC Inc., Lynnfield, Massachusetts, has expanded its sales territory to include upstate New York, western Vermont and Berkshire County, Massachusetts. With the addition of these areas, ARMAC now represents Eriez throughout all of New England, with the exception of Connecticut.

ARMAC recently acquired Spencerport, New York-based Power and Process Technologies and took over the territory the company previously handled for Eriez. According to ARMAC, this merger has been evolving over the past 11 months.

“Brian O’ Malley, formerly of Power and Process Technologies, has joined ARMAC Inc. and will continue to service customers from his western New York office,” says Tom Murray, ARMAC vice president. “Service and responsiveness in eastern New York will increase with the addition of Nick Rubyor, our new Utica-based salesperson who will handle clients from Syracuse east to the New England border.”

Along with Murray, ARMAC President Bob Macdonald will serve the company’s New England customer base. Murray says, “Myra Bruce and Liz Crouse will continue to keep our office running smoothly.”

Senior Sales Director of Eriez – USA Dave Heubel says, “We support this merger 100 percent and anticipate a smooth and seamless transition for our mutual customers.” He adds, “Eriez has had the pleasure of working with the good people of both ARMAC and Power and Process Technologies for more than 30 years. The joining of these two firms is great news for customers as it brings together an all-star team with a combination of close to seven decades of experience selling solutions from Eriez.”